Eh Systems is considering a project with the following cash flows. What's its MIRR? WACC: 10.00%...

Question

Question

Eh Systems is considering a project with the following cash flows. Whats its MIRR? WACC: 10.00% Year Cash flows 1 0 - $450 2

Answer 1

Answer #1

B) 17.07%

Year		Cash Flows
0		-450.00
1		450.00
2		-450.00
3		450.00
4		450.00

Finance rate		10.00%
Reinvestment rate		10.00%

MIRR		=MIRR(D2:D6,finance rate, reinvestment rate)
		= 17.07%

Note:

D2:D6 is the value of cash flows from year 0 to 4 in excel.

Answer 2

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